Principles of Accounting
School:
Class:
Lecturer:
Date:
Time:
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 1
Anglican Cathedral College
Fourth Form
Ms. S. Requena
November 19 – November 22, 2018
40 Minutes Per Class (Five Classes Per Week)
Unit:
Topic(s):
Financial statements of other organizations
Chapter 36: Manufacturing Account
Previous Knowledge:
Students are familiar with the terms ‘Direct and Indirect Cost.
Students were assigned reading on pages 408-409.
Students should be able to:
1. Calculate prime cost and production cost of goods
manufactured.
2. Distinguish between stock of raw materials, work
in progress and finished goods.
3. Complete assessment on Manufacturing Account.
Specific Objectives:
Contents:
Monday November 19, 2018
Garifuna Settlement Day
Tuesday November 20, 2018
36.8 Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Stock of raw materials 1.1.2007
Add: Purchases of raw materials
Less: Stock of raw materials 31.12.2007
Cost of raw materials consumed
Direct labor
Direct expense
Prime Cost
Factory Overhead Expenses:
1
Principles of Accounting
Weekly Plans
Rent
Indirect wages
General expenses
Depreciation
Production Cost
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed
Class work: Exercise 36.4 on page 420-421 will be completed
as a graded class work out of 25 pts in pairs.
Assignment: Complete exercise 36.5 page 421.
Wednesday November 21, 2018
36.8 Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Stock of raw materials 1.1.2007
Add: Purchases of raw materials
Less: Stock of raw materials 31.12.2007
Cost of raw materials consumed
Direct labor
Direct expense
Prime Cost
Factory Overhead Expenses:
Rent
Indirect wages
General expenses
Depreciation
Production Cost
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
2
Principles of Accounting
Weekly Plans
Production cost of goods completed
Class Work:
Students will work on exercise 36.5 page 421.
Assignment: Review notes for next.
Thursday November 22, 2018
36.8 Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Stock of raw materials 1.1.2007
Add: Purchases of raw materials
Less: Stock of raw materials 31.12.2007
Cost of raw materials consumed
Direct labor
Direct expense
Prime Cost
Factory Overhead Expenses:
Rent
Indirect wages
General expenses
Depreciation
Production Cost
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed
Class work: Students will complete graded assessment on
Manufacturing Account.
Assignment: Read page 410 Format of Financial Statement.
3
Principles of Accounting
Weekly Plans
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session


Garifuna Settlement Day.
Garifuna Settlement Day.
Tuesday Session
Tuesday Session

Teacher will have
students explain how they
calculate the
manufacturing account
and then demonstrate it
on the board in a oneminute teaching session.

Students will take turns
and state in their own
words how to calculate
the various sections of the
manufacturing account
and display information
on the board.

Teacher will ask students
to verify if the procedure
is accurately prepared.

Students will assist in the
feedback process and
make any necessary
corrections.

Teacher will have
students then work on
completing exercise 36.4
in pair for a grade.

Students will working in
pairs and complete
exercise 36.4 for a grade.
Wednesday Session
Wednesday Session


Teacher will have
students take out their
assignment on exercise
36.5.
Students will take out
completed assignment on
exercise 36.5.
4
Principles of Accounting
Weekly Plans

Teacher will then
strategically call on
students to complete
specific sections of the
assignment on the board.

Teacher will have the
entire class discuss the
problem and verify of the
calculations are accurate.

Students will take the
white board marker and
complete the assigned
section of the problem on
the board.

Students will share their
calculations and verify if
the problem is worked
properly on the board and
will make changes where
necessary.
Thursday Session
Thursday Session

Teacher will review what
has been taught by
showing a slide show on
Manufacturing Account.

Students will review what
they have learnt thus far
by viewing slide show on
Manufacturing Account.

Teacher will present the
information and will ask
students to record
information on a sheet of
paper.

Students will listen and
record information
presented during the
duration of the slide show
on a sheet of paper.

Teacher will then ask
students to take out a
sheet of paper and
complete assessment on
Manufacturing Account.

Students will complete
assessment on
Manufacturing Account
and will be allowed to use
whatever information they
recorded on the sheet of
paper during the
presentation.
Assignment:
Read chapter 36: Manufacturing Account
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
5
Principles of Accounting
Weekly Plans
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Graded class work 36.4 page 419 25 pts
Test Manufacturing Account 36.6x 50 pts
6
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 2
School:
Class:
Lecturer:
Date:
Time:
Anglican Cathedral College
Unit:
Topic(s):
Financial statements of other organizations
Previous Knowledge:
Specific Objectives:
Students are familiar with the manufacturing account layout
and are aware of how to prepare financial statements.
Students should be able to:
1. Prepare a TP&L and Balance for exercises 36.3x –
36.6x page 420-422.
2. Present completed exercise to the class.
Contents:
Monday November 26, 2018
Fourth Form
Ms. S. Requena
November 26 – November 30, 2018
40 Minutes Per Class (Five Classes Per Week)
Chapter 36: Manufacturing Account
Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed c/d
Trading Account
Sales
Less: Production cost of goods sold:
Opening stock of finished goods
Add: Production cost of goods completed b/d
Less: Closing stock of finished goods
Gross Profit
Administrative Expenses:
Administrative salaries
Depreciation on office computers
Selling and Distribution Expenses:
7
Principles of Accounting
Weekly Plans
Carriage outwards
Financial Charges:
Discount allowed
Net Profit:
Class work: Exercise 36.6x and 36.3x on pages 419- 420 will
be completed during class and discussed in details.
Assignment: complete balance sheet for exercise 36.3x page
420.
Tuesday November 27, 2018
Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed c/d
Trading Account
Sales
Less: Production cost of goods sold:
Opening stock of finished goods
Add: Production cost of goods completed b/d
Less: Closing stock of finished goods
Gross Profit
Administrative Expenses:
Administrative salaries
Depreciation on office computers
Selling and Distribution Expenses:
Carriage outwards
Financial Charges:
Discount allowed
Net Profit:
Balance Sheet as at December 31 2007
Cost Total Depre. Net Book Value
Fixed Assets:
8
Principles of Accounting
Weekly Plans
Productive machinery
Office equipment
Current Assets:
STOCK:
Raw materials
Finished goods
Work in progress
Debtors
Bank
Cash
Less: Current Liabilities
Creditors
Net current assets
Financed by:
Capital
Add: Net Profit
Less: Drawings
Class work: TP&L and Balance Sheet for exercise 36.4 on
page 420- 421.
Assignment: Complete exercise for assignment.
Wednesday November 28, 2018
Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed c/d
Trading Account
Sales
9
Principles of Accounting
Weekly Plans
Less: Production cost of goods sold:
Opening stock of finished goods
Add: Production cost of goods completed b/d
Less: Closing stock of finished goods
Gross Profit
Administrative Expenses:
Administrative salaries
Depreciation on office computers
Selling and Distribution Expenses:
Carriage outwards
Financial Charges:
Discount allowed
Net Profit:
Balance Sheet as at December 31 2007
Cost Total Depre. Net Book Value
Fixed Assets:
Productive machinery
Office equipment
Current Assets:
STOCK:
Raw materials
Finished goods
Work in progress
Debtors
Bank
Cash
Less: Current Liabilities
Creditors
Net current assets
Financed by:
Capital
Add: Net Profit
Less: Drawings
Class Work:
10
Principles of Accounting
Weekly Plans
Students will work completing the TP&L and Balance Sheet
for exercises 36.5 pages 420-421 and submit on newsprint for
a grade (30 pts).
Assignment: Review notes for next.
Thursday November 29, 2018
Format of Financial Statement
Manufacturing Account for the year ended 31 December 2007
Add: Work in progress 1.1.2007
Less: Work in progress 31.12.2007
Production cost of goods completed c/d
Trading Account
Sales
Less: Production cost of goods sold:
Opening stock of finished goods
Add: Production cost of goods completed b/d
Less: Closing stock of finished goods
Gross Profit
Administrative Expenses:
Administrative salaries
Depreciation on office computers
Selling and Distribution Expenses:
Carriage outwards
Financial Charges:
Discount allowed
Net Profit:
Balance Sheet as at December 31 2007
Cost Total Depre. Net Book Value
Fixed Assets:
Productive machinery
Office equipment
Current Assets:
11
Principles of Accounting
Weekly Plans
STOCK:
Raw materials
Finished goods
Work in progress
Debtors
Bank
Cash
Less: Current Liabilities
Creditors
Net current assets
Financed by:
Capital
Add: Net Profit
Less: Drawings
Class work: Students will complete graded assessment on
Manufacturing Account TP&L and Balance Sheet exercise
36.6x pages 421-422.
Assignment: Read page 410 Format of Financial Statement.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session


Teacher will discuss the
correct answer for graded
exercise 36.6x.
Students will ask
questions pertaining to the
exercise and students will
respond.
12
Principles of Accounting
Weekly Plans

Teacher is ensuring that
students are given the
opportunity to internalize
the reasons for the
recording the entries into
manufacturing account.

Teacher will place
students in small groups
to work on the trading
and profit and loss
account for exercise
36.3x page 420.

Students will take the
opportunity to internalize
the reasons for the
recording the entries into
manufacturing account.

Students will form small
groups and work on the
trading and profit and loss
account for exercise 36.3x
page 420.
Tuesday Session
Tuesday Session

Teacher will call students
to the board to complete
the trading and profit and
loss account and balance
sheet for exercise 36.3x
that was not fully
completed in class.

Teacher will assign
individual work on the
trading and profit and loss
account and balance sheet
for exercise 36.4 pages
420- 421.
Wednesday Session

Students will state
whether the information
on the board is accurate
and if it is not accurately
recorded to make
corrections.

Students will work
individually on the
trading and profit and loss
account and balance sheet
for exercise 36.4 pages
420- 421.
Wednesday Session

Teacher will provided

with a newsprint to record
the manufacturing
account for exercise 36.5.
Students will be provided
with a newsprint to record
the manufacturing
account for exercise 36.5.

Students will explain the
process of preparing the
TP&L account and the
balance sheet to the class.

Students will explain the
process of preparing the
TP&L account and the
balance sheet to the class.
13
Principles of Accounting
Weekly Plans

Teacher will collect the
exercise and grade it.

Students will submit the
exercise for a grade.
Thursday Session
Thursday Session

Teacher will assign
TP&L and Balance Sheet
for exercise 36.6x pages
421-422 that will be
graded.

Students will complete
TP&L and Balance Sheet
for exercise 36.6x pages
421-422 that will be
graded.

Teacher will bring
supplies along with game
idea and will have the
class assist on creating a
fun Manufacturing game.

Students will assist on
creating a fun
Manufacturing game.
Assignment:
Read chapter 36: Manufacturing Account
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Class work TP&L and Balance Sheet for exercise 36.4-36.5
pages 420-421 (30 pts)
TP&L and Balance Sheet for exercise 36.6x pages 421-422
(50 pts)
14
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 3
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Specific Objectives:
Contents:
Anglican Cathedral College
Fourth Form
Ms. S. Requena
December 3 – December 7, 2018
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 31: Introduction to Accounting Ratios
Students are aware of the terms gross profit, cost of goods
sold, selling price.
Students should be able to:
1. Define the term mark-up and margin.
2. Distinguish between mark-up and margin.
3. Discuss the relationship between profit and selling
price, and profit and cost price.
Monday December 3, 2018
Introduction to Accounting Ratios
31.2 Mark-up and margin
The purchase cost, gross profit and selling price of goods or
services may be shown as:
Cost price + Gross profit = Selling price
 The gross profit when shown as a fraction or percentage
of the cost price is known as the Mark-up.
 The gross profit when shown as a fraction or percentage
of the selling price is known as the Margin.
The mark-up and margins can be shown as:
Cost price + Gross profit = Selling price
$4
+ $1
= $5
15
Principles of Accounting
Weekly Plans
Mark-up = Gross Profit
Cost price
as a fraction or – if required as a percentage- multiply by
100:
Margin = Gross Profit
Selling price
as a fraction or – if required as a percentage- multiply by
100:
Class work: Draw exhibit 31.1 page 343 in notebook.
Exercise 31.1 page 349 (A)
Exercise 31.2 page 349 (A)
Assignment: Read page 346: The relationship between markup and margin.
If an item costs $390 and is sold for $425, what are the markup and margin, expressed as fractions and percentages?
If an item costs $530 and is sold for $610, what are the markup and margin, expressed as fractions and percentages?
If an item costs $865 and is sold for $940, what are the markup and margin, expressed as fractions and percentages?
Tuesday December 4, 2018
31.4 The Relationship between mark-up and margin
As both of these figures refer to the same profit but are
expressed as a fraction or a percentage of different figures,
there is a relationship between them. If one is known as a
fraction, the other can be found.
If the mark-up is known, in order to find the margin you need
to make the same numerator to be the numerator of the
16
Principles of Accounting
Weekly Plans
margin. Then, for the denominator of the margin, take the
total of the mark-up’s denominator plus the numerator. An
example can now be shown:
Mark-up
Margin
11= 1
4
4 +1
5
22= 1
11
11 +1
13
If the margin is known, to fund the mark-up take the same
numerator to be the numerator of the mark-up, take the figure
of the margin’s denominator less the numerator:
Mark-up
Margin
11= 1
6
6-1
5
32= 3
13
13 - 3
10
Class work: Exercise 31.1 page 349 (B, C)
Exercise 31.2 page 349 (B, C)
.
Assignment: Read pages 343-346.
Wednesday December 5, 2018
31.3 Calculating missing figures
We can use the ratios given in Section 31.2 to complete
trading accounts where some of the figures are missing. For
ease of illustrating this fact, all examples in this chapter:
 Assume that all the goods in a business have the same
rate of mark-up
 Ignore wastages and theft of goods.
17
Principles of Accounting
Weekly Plans
Example 1: The following figures apply for the year 2007 for
M. Smart:
Stock 1.1.2007
Stock 12.31.2007
Purchases
$ 400
$ 600
$5,200
A uniform rate of mark-up of 20% is applied. To find the
gross profit and the sales figure, first of all, we enter the
figures we already know in the trading account.
Answer:
It is known that:
Cost of goods sold + Gross Profit = Sales
and you know that you can use mark-up the find profit,
because:
Cost of goods sold + % mark-up = Sales
Thus:
$5,000 + 20% = Sales
Therefore:
$5,000 + $1,000 = $6,000
Class work: Exercise 31.3 page 350.
Assignment: Exercise 31.4 page 350.
Thursday December 6, 2018
31.3 Calculating missing figures
We can use the ratios given in Section 31.2 to complete
trading accounts where some of the figures are missing. For
ease of illustrating this fact, all examples in this chapter:
 Assume that all the goods in a business have the same
rate of mark-up
 Ignore wastages and theft of goods.
18
Principles of Accounting
Weekly Plans
Example 1: The following figures apply for the year 2007 for
M. Smart:
Stock 1.1.2007
Stock 12.31.2007
Purchases
$ 400
$ 600
$5,200
A uniform rate of mark-up of 20% is applied. To find the
gross profit and the sales figure, first of all, we enter the
figures we already know in the trading account.
Answer:
It is known that:
Cost of goods sold + Gross Profit = Sales
and you know that you can use mark-up the find profit,
because:
Cost of goods sold + % mark-up = Sales
Thus:
$5,000 + 20% = Sales
Therefore:
$5,000 + $1,000 = $6,000
Class work: Exercise 31.5x page 350.
Assessment: Exercise 31.6x page 350 (40 pts).
Methodology:





Brainstorming
Discussion
Note taking
Analyzing
Researching
19
Principles of Accounting
Activities:
Weekly Plans
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will define the
terms mark-up and
margin using a product as
an example.

Students will pay
attention to what is markup and margin with the
aid of a product.

Teacher will then ask
students if a profit or loss
was made based on the
prices they provided.
Teacher will distinguish
between the two terms by
explaining that one is
related to cost and the
other selling price.

Students will guess the
cost price and the selling
price of the product and
determine the profit/loss.
Students will then draw
exhibit 31.1 in their
notebooks to remember
the relationship between
profit and selling price
and profit and cost price.


Teacher will be provide
students with additional
practice on the topic.


Students will complete
additional practice on the
topic.
Tuesday Session
Tuesday Session

Teacher will call students
to the board to calculate
mark-up and margin for
exercises 31.1 page 349
(B, C) and 31.2 page 349
(B, C).


Teacher will ask students 
to provide feedback based
on the information on the
board.
Students will state
whether the information
on the board is accurate
and if it make corrections.

Teacher will assign

reading assignment on the
topic for next class pages
343-346.
Students will record
reading assignment on the
topic for next class pages
343-346.
Wednesday Session
Students will go to the
board to calculate markup and margin for
exercises 31.1 page 349
(B, C) and 31.2 page 349
(B, C).
Wednesday Session
20
Principles of Accounting
Weekly Plans

Teacher will be distribute
newsprint to record the
trading account for
exercise 31.3 page 350.

Students will be provided
with a newsprint to record
the trading account for
exercise 31.3 page 350.

Teacher will have
students work on
demonstrating how
figures were calculated.

Students will explain
correct calculation to the
class in order to ensure
they understand.

Teacher will make
corrections were
necessary.

Students will make
corrections and place it on
the wall for reference.

Teacher will assign
exercise 31.4 page 350
for assignment.

Students will complete
exercise 31.4 page 350 for
assignment.
Thursday Session
Thursday Session

Teacher will review
calculating missing
figures using exercise
31.5x page 350.

Students will participate
in revision of calculating
missing figures using
exercise 31.5x page 350.

Teacher will answer
queries from students.


Teacher will assign
graded exercise 31.6x
page 350.
Students will ask any
necessary questions in
order to understand the
concept.

Students will complete
graded exercise 31.6x
page 350.
Assignment:
Read chapter 31: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
21
Principles of Accounting
Weekly Plans
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Exercise 31.6x page 350 (40 pts).
22
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 5
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 7 – January 11, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 31: Introduction to Accounting Ratios
Chapter 39: Accounting Ratios
Students can differentiate between Mark-Up and Margin.
Specific Objectives:
Students should be able to:
1. Calculate missing figures to accurately prepare
trading account.
2. Complete graded exercise on topic covered.
3. Calculate and analyze three profitability ratios
using trading and profit and loss account.
Contents:
Monday January 7, 2019
Introduction to Accounting Ratios
31.3 Calculating missing figures
We can use the ratios given in Section 31.2 to complete
trading accounts where some of the figures are missing. For
ease of illustrating this fact, all examples in this chapter:
 Assume that all the goods in a business have the same
rate of mark-up
 Ignore wastages and theft of goods.
Example 1: The following figures apply for the year 2007 for
M. Smart:
Stock 1.1.2007
Stock 12.31.2007
Purchases
$ 400
$ 600
$5,200
23
Principles of Accounting
Weekly Plans
A uniform rate of mark-up of 20% is applied. To find the
gross profit and the sales figure, first of all, we enter the
figures we already know in the trading account.
Answer:
It is known that:
Cost of goods sold + Gross Profit = Sales
and you know that you can use mark-up the find profit,
because:
Cost of goods sold + % mark-up = Sales
Thus:
$5,000 + 20% = Sales
Therefore:
$5,000 + $1,000 = $6,000
Class work: Problems 1-4 from test.
Assignment: Review notes.
Tuesday January 8, 2019
31.3 Calculating missing figures
We can use the ratios given in Section 31.2 to complete
trading accounts where some of the figures are missing. For
ease of illustrating this fact, all examples in this chapter:
 Assume that all the goods in a business have the same
rate of mark-up
 Ignore wastages and theft of goods.
Example 1: The following figures apply for the year 2007 for
M. Smart:
Stock 1.1.2007
Stock 12.31.2007
Purchases
$ 400
$ 600
$5,200
24
Principles of Accounting
Weekly Plans
A uniform rate of mark-up of 20% is applied. To find the
gross profit and the sales figure, first of all, we enter the
figures we already know in the trading account.
Answer:
It is known that:
Cost of goods sold + Gross Profit = Sales
and you know that you can use mark-up the find profit,
because:
Cost of goods sold + % mark-up = Sales
Thus:
$5,000 + 20% = Sales
Therefore:
$5,000 + $1,000 = $6,000
Class work: Problems 5-7 from the test.
Assignment: Review notes for assessment.
Wednesday January 9, 2019
31.3 Calculating missing figures
We can use the ratios given in Section 31.2 to complete
trading accounts where some of the figures are missing. For
ease of illustrating this fact, all examples in this chapter:
 Assume that all the goods in a business have the same
rate of mark-up
 Ignore wastages and theft of goods.
Example 1: The following figures apply for the year 2007 for
M. Smart:
Stock 1.1.2007
$ 400
25
Principles of Accounting
Weekly Plans
Stock 12.31.2007
Purchases
$ 600
$5,200
A uniform rate of mark-up of 20% is applied. To find the
gross profit and the sales figure, first of all, we enter the
figures we already know in the trading account.
Answer:
It is known that:
Cost of goods sold + Gross Profit = Sales
and you know that you can use mark-up the find profit,
because:
Cost of goods sold + % mark-up = Sales
Thus:
$5,000 + 20% = Sales
Therefore:
$5,000 + $1,000 = $6,000
Graded Class work: Quiz on Missing Figures 30 pts.
Assignment: Read chapter 39: Accounting Ratios.
Thursday January 10, 2019
31.5 Other Accounting Ratios
There are some ratios that are often used to compare one
period’s results against those of a previous period. Three
ratios in most common use are:

Gross Profit as percentage of Sales

Net Profit as percentage of Sales

Stock Turnover Ratio
26
Principles of Accounting
Weekly Plans
Gross Profit as percentage of Sales
The basic formula is:
Gross profit x 100 = GP as % of Sales
Sales
This is the amount of gross profit for every $100 of sales. If
the answer turned out to be 15% this would mean that for
every $100 of sales $15 gross profit was made before any
expenses were paid.
This ratio is used as a test of the profitability of the sales.
Even if sales are increased it may not mean that the gross
profit will increase. The trading accounts in exhibit 31.2 page
347 illustrate this.
Net Profit as percentage of Sales
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
This calculation will show how much net profit has been
made for every $100 of sales.
It brings the expenses into calculation, as opposed to the gross
profit percentage, which ignores expenses. Changes in the
ratio will be due either to:
 The gross profit ratio changing; and/or
 The expenses per $100 of sales changing.
When changes are due to expenses, they will be examined to
see if anything can be done in the future to minimize the
expenses and ensure that a reasonable net profit is made.
27
Principles of Accounting
Weekly Plans
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
The stock turnover ratio measures how well the firm is
managing how to keep its stock to a low figure as possible
without losing profitability and to sell its goods as quick as
possible.
Any increase in stocks or slowdown in sales will show a
lower ratio.
If only the opening and closing stock are known, the average
stock is found by adding these two figures together and
dividing them by two. That is the usual situation in
examinations.
Class work:
Exercise 39.1 pages 463-464 A (i) (ii) (iv)
Assignment:
Exercise 39.2x pages 465-466 A (i) (ii) (iv)
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session


Teacher will provide
students with more
Students will work on
their own for five (5)
28
Principles of Accounting
Weekly Plans
practice exercises on
calculating missing
figures.
minutes then move to a
person close to them to
verify their answers.

Teacher will then have
students form larger
groups of 4s and decide
on the calculation that is
accurate.

Students will form larger
groups and bet against
each other to see whose
calculation is accurate.

Teacher will verify which
group won the bet and the
group will receive extra
points.

Students will place
calculation on the board.

Teacher will provide
additional practice for
assignment.

Students will complete
additional practice for
assignment.
Tuesday Session
Tuesday Session

Teacher will provide
students with more
practice exercises on
calculating missing
figures.

Students will select a
problem from the two that
will be provided and then
work in groups of 4s to
solve the problem.

Teacher will verify which
group calculated the
problem accurately.

Students will place
calculation on the board.

Teacher will answer any
questions based on the
topic in order for students
to be prepared for
assessment next class.

Students will review topic
in order to prepare
themselves for
assessment.
Wednesday Session
Wednesday Session


Teacher will distribute
graded assessment.
Students will complete
graded assessment.
29
Principles of Accounting
Weekly Plans

Teacher will give students 
the entire class time to
complete assessment.
Students will use the
entire class session to
calculate the required
information and submit
papers at the end of the
session.
Thursday Session
Thursday Session

Teacher will provide
students with Profitability
Accounting Ratios that
they will come across
when analyzing financial
statements.

Students will record
formulas in their
notebooks and ask any
necessary questions to
better understand the
topic.

Teacher provide students
with class work to
calculate profitability
ratios.

Students will record
information on the board.
Assignment:
Read chapter 39: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Quiz Missing Figures (30 pts).
30
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 6
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 14 – January 18, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 39: Accounting Ratios
Previous Knowledge:
Students can differentiate between Mark-Up and Margin.
Specific Objectives:
Students should be able to:
1. Calculate and analyze three profitability ratios
using trading and profit and loss account.
Contents:
Monday January 14, 2019
Introduction to Accounting Ratios
31.5 Other Accounting Ratios
There are some ratios that are often used to compare one
period’s results against those of a previous period. Three
ratios in most common use are:

Gross Profit as percentage of Sales

Net Profit as percentage of Sales

Stock Turnover Ratio
Gross Profit as percentage of Sales
The basic formula is:
Gross profit x 100 = GP as % of Sales
31
Principles of Accounting
Weekly Plans
Sales
This is the amount of gross profit for every $100 of sales. If
the answer turned out to be 15% this would mean that for
every $100 of sales $15 gross profit was made before any
expenses were paid.
This ratio is used as a test of the profitability of the sales.
Even if sales are increased it may not mean that the gross
profit will increase. The trading accounts in exhibit 31.2 page
347 illustrate this.
Net Profit as percentage of Sales
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
This calculation will show how much net profit has been
made for every $100 of sales.
It brings the expenses into calculation, as opposed to the gross
profit percentage, which ignores expenses. Changes in the
ratio will be due either to:
 The gross profit ratio changing; and/or
 The expenses per $100 of sales changing.
When changes are due to expenses, they will be examined to
see if anything can be done in the future to minimize the
expenses and ensure that a reasonable net profit is made.
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
32
Principles of Accounting
Weekly Plans
The stock turnover ratio measures how well the firm is
managing how to keep its stock to a low figure as possible
without losing profitability and to sell its goods as quick as
possible.
Any increase in stocks or slowdown in sales will show a
lower ratio.
If only the opening and closing stock are known, the average
stock is found by adding these two figures together and
dividing them by two. That is the usual situation in
examinations.
Class work:
Exercise 39.1 pages 463-464 A (i) (ii) (iv)
Assignment:
Exercise 39.2x pages 465-466 A (i) (ii) (iv)
Tuesday January 15, 2019
Profitability ratios
1. Expenses to sales ratio:
Expenses
Sales
Expenses as a percentage of sales = Expenses x 100
Sales
It is useful to compare the expenses/sales percentage with the
previous results.
2. Return on capital employed ratio (ROCE)
Net Profit
Capital Employed
Return of capital employed = Net Profit
x
Capital employed
100
33
Principles of Accounting
Weekly Plans
It shows (as a percentage) the net profit made for each $100 of
capital employed in the business. The higher this ratio is the
more profitable the business whilst a lower ratio indicates that
the business is less profitable.
Class work:
Exercise 39.1 pages 463-464 A (iii) (v)
Assignment:
Exercise 39.2x pages 465-466 A (iii) (v)
Wednesday January 16, 2019
Liquidity Ratios
A business that has satisfactory liquidity will have sufficient
funds, normally referred to as ‘working capital’, to pay
creditors at the required time. The ability to pay creditors on
time is vital to ensure that good business relationships are
maintained.
Ratios used to examine liquidity:
1. Current ratio (working capital ratio)
2. Acid test ratio (quick ratio)
3. Debtors : sales ratio
4. Creditors: purchases ratio.
1. Current ratio (working capital ratio):
Current assets
Current liabilities
2. Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
3. Debtors : Sales ratio: Number of months debtors (on
average) take to pay
Debtorsx 12 times a year
Sales for the year
34
Principles of Accounting
Weekly Plans
4. Creditors : Purchases ratio: Number of months it takes
(on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
Class work:
Exercise 39.1 pages 463-464 A (vi) (vii) (vii) (ix)
Assignment:
Exercise 39.2x pages 465-466 A (vi) (vii) (vii) (ix)
Thursday January 17, 2019
Revision Profitability and Liquidity Ratios
Profitability ratios
The main ratios used to examine profitability are:
1.
2.
3.
4.
5.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE) ratio
Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
1.
2.
3.
4.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio.
Graded Class work (30pts):
Exercise 11.4 page 116
35
Principles of Accounting
Weekly Plans
TP&L- 10 pts
Balance Sheet- 10 pts
Ratios- 10 pts
Assignment:
Review formulas for assignment.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session


Students will record
formulas in their
notebooks and ask any
necessary questions to
understand the topic.

Students will record
calculated information on
the board.

Teacher will provide
students with Profitability
Accounting Ratios that
they will come across
when analyzing financial
statements.
Teacher provide students
with class work to
calculate profitability
ratios.
Tuesday Session
Tuesday Session

Teacher will provide
students with Profitability
Accounting Ratios that
they will come across
when analyzing financial
statements.

Students will record
formulas in their
notebooks and ask any
necessary questions to
better understand the
topic.

Teacher provide students
with class work to

Students will place
calculations on a
36
Principles of Accounting
Weekly Plans
calculate profitability
ratios.
newsprint and will present
it to the class.
Wednesday Session
Wednesday Session

Teacher will provide
students with Liquidity
Accounting Ratios that
they will come across
when analyzing financial
statements.

Students will record
formulas in their
notebooks and ask any
necessary questions to
better understand the
topic.

Teacher provide students
with class work to
calculate Liquidity
Ratios.

Students will calculate
Liquidity Ratios and
record information on the
board.
Thursday Session
Thursday Session

Teacher will have
students recall the
profitability and liquidity
ratios using a minute slip
technique where they will
be given a minute to
record all the profitability
ratios and a minute to
record all the liquidity
ratios with formulas.

Students will recall the
profitability and liquidity
ratios using a minute slip
technique and will use a
minute to record all the
profitability ratios and a
minute to record all the
liquidity ratios with
formulas.

Teacher will go through
what the students
recorded and make
corrections where
necessary.

Students will share what
they recorded and make
corrections where
necessary.

Teacher will have
students turn to page 116
and prepare the TP&L
Account and the Balance
Sheet for exercise 11.4.

Students will then be
asked to turn to page 116
and prepare the TP&L
Account and the Balance
Sheet for exercise 11.4.
37
Principles of Accounting
Weekly Plans

Teacher will instruct
students to calculate the
profitability and liquidity
ratios.

After preparing the
financial statements,
students will calculate the
profitability and liquidity
ratios.
Assignment:
Review chapter 39: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Class Work exercise 11.4 page 116 30 pts
38
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 7
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 21 – January 25, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 39: Accounting Ratios
Specific Objectives:
Students are aware of the different profitability and liquidity
ratios.
Students should be able to:
1. Calculate profitability and liquidity ratios using
trading and profit and loss account and balance
sheet.
Contents:
Monday January 21, 2019
Introduction to Accounting Ratios
Revision Profitability and Liquidity Ratios
Profitability ratios
The main ratios used to examine profitability are:
1.
2.
3.
4.
5.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE) ratio
Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
39
Principles of Accounting
Weekly Plans
1.
2.
3.
4.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio.
Graded Class work (30pts):
Exercise 11.4 page 116
TP&L- 10 pts
Balance Sheet- 10 pts
Ratios- 10 pts
Assignment:
Review formulas for assignment.
Tuesday January 22, 2019
Profitability ratios
The main ratios used to examine profitability are:
1.
2.
3.
4.
5.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE) ratio
Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
1.
2.
3.
4.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio
Class work:
Exercise 11.5x page 116.
40
Principles of Accounting
Weekly Plans
Assignment:
Complete calculations on profitability and liquidity ratios.
Wednesday January 23, 2019
Profitability ratios
The main ratios used to examine profitability are:
6. Gross profit : Sales ratio
7. Net profit : sales ratio
8. Expenses : sales ratio
9. Return on capital employed (ROCE) ratio
10. Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
5.
6.
7.
8.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio
Class work:
Exercise 11.6x page 116
Assignment:
Complete exercise on calculating profitability and liquidity
ratios.
Thursday January 24, 2019
41
Principles of Accounting
Weekly Plans
Test on Profitability and Liquidity Ratios (40 pts)
Assignment:
Review formulas for assignment.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will have
students recall the
profitability and liquidity
ratios using a minute slip
technique where they will
be given a minute to
record all the profitability
ratios and a minute to
record all the liquidity
ratios with formulas.

Students will recall the
profitability and liquidity
ratios using a minute slip
technique and will use a
minute to record all the
profitability ratios and a
minute to record all the
liquidity ratios with
formulas.

Teacher will go through
what the students
recorded and make
corrections where
necessary.

Students will share what
they recorded and make
corrections where
necessary.

Teacher will have
students turn to page 116
and prepare the TP&L
Account and the Balance
Sheet for exercise 11.4.

Students will then be
asked to turn to page 116
and prepare the TP&L
Account and the Balance
Sheet for exercise 11.4.

Teacher will instruct
students to calculate the
profitability and liquidity
ratios.

After preparing the
financial statements,
students will calculate the
42
Principles of Accounting
Weekly Plans
profitability and liquidity
ratios.
Tuesday Session
Tuesday Session



Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.5x.

Teacher will give students
one minute to consult a

friend to verify if they
have the correct figures
for the financial
statements.
Teacher will provide
guidance where necessary 
to ensure students
understand the concepts.
Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.5x.
Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.
Students will calculate the
profitability and liquidity
ratios.
Wednesday Session
Wednesday Session



Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.6x.

Teacher will give students
one minute to consult a

friend to verify if they
have the correct figures
for the financial
statements.
Teacher will provide
guidance where necessary 
to ensure students
understand the concepts.
Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.6x.
Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.
Students will calculate the
profitability and liquidity
ratios.
Thursday Session
Thursday Session
43
Principles of Accounting
Weekly Plans

Teacher will administer
test on profitability and
liquidity ratios.

Students will complete
test on profitability and
liquidity ratios.
Assignment:
Review chapter 39: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Test Profitability and Liquidity Ratios 40 pts
44
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 8
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 28 – February 1, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 39: Accounting Ratios
Specific Objectives:
Students are aware of the different profitability and liquidity
ratios.
Students should be able to:
1. Calculate profitability and liquidity ratios using
trading and profit and loss account and balance
sheet.
Contents:
Monday January 28, 2019
Introduction to Accounting Ratios
Revision Profitability and Liquidity Ratios
Profitability ratios
The main ratios used to examine profitability are:
1.
2.
3.
4.
5.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE) ratio
Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
1. Current ratio (working capital ratio)
45
Principles of Accounting
Weekly Plans
2. Acid test ratio (quick ratio)
3. Debtors : sales ratio
4. Creditors: purchases ratio
Class work:
Exercise 11.5x page 116.
Assignment:
Complete calculations on profitability and liquidity ratios.
Tuesday January 29, 2019
Profitability ratios
The main ratios used to examine profitability are:
1.
2.
3.
4.
5.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE) ratio
Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
1.
2.
3.
4.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio
Class work:
Exercise 11.6x page 116
Assignment:
Complete exercise on calculating profitability and liquidity
ratios.
46
Principles of Accounting
Weekly Plans
Wednesday January 30, 2019
CULTURAL AWARENESS DAY
Thursday January 31, 2019
Test on Profitability and Liquidity Ratios (40 pts)
Assignment:
Read Chapter 21 Control Accounts.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.5x.

Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.5x.

Teacher will give students 
one minute to consult a
friend to verify if they
have the correct figures
for the financial
statements.
Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.

Teacher will provide
guidance where necessary
47
Principles of Accounting
Weekly Plans
to ensure students
understand the concepts.

Students will calculate the
profitability and liquidity
ratios.
Tuesday Session
Tuesday Session

Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.6x.

Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.6x.

Teacher will give students 
one minute to consult a
friend to verify if they
have the correct figures
for the financial
statements.
Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.

Teacher will provide

guidance where necessary
to ensure students
understand the concepts.
Students will calculate the
profitability and liquidity
ratios.
Wednesday Session
Wednesday Session


CULTURAL
AWARENESS DAY.
CULTURAL
AWARENESS DAY.
Thursday Session
Thursday Session


Teacher will administer
test on profitability and
liquidity ratios.
Students will complete
test on profitability and
liquidity ratios.
Assignment:
Review chapter 39: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
48
Principles of Accounting
Weekly Plans
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Test Profitability and Liquidity Ratios 40 pts
49
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 9
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
February 4 – February 8, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 21: Control Accounts
Previous Knowledge:
Students have prepared books of Original Entries.
Specific Objectives:
Students should be able to:
1. Identify the need for control accounts.
2. Identify the sources of information for control
accounts.
3. Discuss the advantages of control accounts.
4. Discuss the layout for sales and purchases ledger
control accounts.
Contents:
Monday February 4, 2019
The need for control accounts
Where a business is small all the accounts may be contained
in one ledger and at the end of the accounting period a trial
balance could easily be drawn up as a test of the arithmetical
accuracy of the accounts.
However, it must be remembered that certain errors may not
be revealed by the trial balance. If the trial balance totals
disagree, the books could easily and quickly be checked to
find the errors.
However, as the business grows the accounting requirements
also expand and the work has to be divided up into various
separate ledgers and, consequently, errors are not as easily
identifiable.
The error or errors could be very difficult to find and it may
be necessary to check every item in every ledger. Therefore,
50
Principles of Accounting
Weekly Plans
what is required is a type of trial balance for each ledger, and
this requirement is met by the Control Account. Thus it is
only the ledgers where the control accounts do not balance
that need detailed checking to locate any errors.
The principle of control accounts
The principle on which the control account is based is simple,
and is as follows. If the opening balance of an account is
known, together with the information of the additions and
deductions entered in the account, the closing balance can be
calculated.
This idea can be applied to a complete ledger. Suppose that
there were only four accounts in the sales ledger, in this case a
sales ledger control account would consist only of the totals of
each of the items in the sales ledger.
Example:
May 1 Balances b/d: 850+1500+750+450=$3,550
Sales in May: 900+350+400+600=$2,250
Cheques received in May: 820+900=$1,720
Discounts allowed in May: 30+20=$50
Returns inwards in May: 200+110=$310
Bad debts written off in May: $450
Class work:
Exercise 14.4x page 146-147.
Assignment:
Complete sales ledgers and sales day book.
Tuesday February 5, 2019
Information for control accounts
Sales Ledger Control
Source
 Opening debtors- List of debtors’ balances drawn up
at the end of the previous period.
 Credit sales- Total from sales day book (journal).
51
Principles of Accounting
Weekly Plans





Returns inwards- Total of returns inwards day book
(journal).
Cheques received- Cash book: Bank column on
received side.
Cash received- Cash book: Cash column on received
side.
Discounts allowed- Total of discounts allowed column
in the cash book.
Closing debtors- List of debtors’ balances drawn up at
the end of the period.
Purchases Ledger Control
Source
 Opening creditors- List of creditors’ balances drawn
up at the end of the previous period.
 Credit purchases- Total from purchases day book
(journal).
 Returns outwards- Total of returns outwards day book
(journal).
 Cheques paid- Cash book: Bank column on payments
side.
 Cash paid- Cash book: Cash column on payments side.
 Discounts received- Total of discounts received
column in the cash book.
 Closing creditors- List of creditors’ balances drawn up
at the end of the period.
Class work:
Exercise 16.5x page 164 (Sales and Purchases Ledgers and
Day Books)
Assignment:
Complete exercise for assignment.
Wednesday February 6, 2019
Advantages of Control Account
There are several advantages an organization can benefit from
by using control accounts as shown below:

Location of error- By preparing control accounts any
arithmetical errors that may have occurred are
identified. Also, if a clerk has inadvertently omitted
52
Principles of Accounting
Weekly Plans


entering an invoice or payment in the personal
accounts these too would be identified since the
control account acts as a mini trail balance. However,
it must be pointed out that there are other errors that
may still be contained in the ledgers such as
mispostings or compensating errors.
Prevention of fraud- Normally the control accounts
are under the supervision of a senior member of the
accounting team or accounts manager. This makes
fraud more difficult since any transaction entered into
a ledger account must also be included in the control
account and since a different member of staff would
be responsible for maintaining the ledgers from the
member supervising the control account it would be
more difficult to carry out fraudulent transactions.
Therefore the supervisor or manager provides an
internal check on the procedures.
Information for Management- For management
purposes the balances on the control accounts can
always be taken to equal debtors and creditors without
waiting for an extraction of individual balances.
Management control is thereby aided because the
speed at which information is obtained is one of the
prerequisites of efficient control.
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
53
Principles of Accounting
Weekly Plans
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Exercise 21.1-21.2 page 221 (Sales Ledger Control Account)
Assignment:
Complete exercise for assignment.
Thursday February 7, 2019
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Exercise 21.3-21.5 page 221 (Sales and Purchases Ledger
Control Accounts)
54
Principles of Accounting
Weekly Plans
Assignment:
Complete exercise for assignment.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.5x.

Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.5x.

Teacher will give students 
one minute to consult a
friend to verify if they
have the correct figures
for the financial
statements.
Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.

Teacher will provide
 Students will calculate the
guidance where necessary
profitability and liquidity
to ensure students
ratios.
understand the concepts.
Tuesday Session
Tuesday Session


Teacher will assign
TP&L Account and the
Balance Sheet for
exercise 11.6x.
Teacher will give students
one minute to consult a
friend to verify if they
have the correct figures

Students will prepare the
TP&L Account and the
Balance Sheet for
exercise 11.6x.

Students will use the one
minute given to consult a
friend to verify if they
have the correct figures
for the financial
statements.
55
Principles of Accounting
Weekly Plans
for the financial
statements.


Teacher will provide
guidance where necessary
to ensure students
understand the concepts.
Wednesday Session

Wednesday Session

Students will calculate the
profitability and liquidity
ratios.
CULTURAL
AWARENESS DAY.
CULTURAL
AWARENESS DAY.
Thursday Session
Thursday Session


Students will complete
test on profitability and
liquidity ratios.
Teacher will administer
test on profitability and
liquidity ratios.
Assignment:
Review chapter 39: Accounting Ratios
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Test Profitability and Liquidity Ratios 40 pts
56
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 10
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
February 11 – February 15, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 21: Control Accounts
Previous Knowledge:
Students have prepared books of Original Entries.
Specific Objectives:
Students should be able to:
1. Identify the need for control accounts.
2. Identify the sources of information for control
accounts.
3. Discuss the advantages of control accounts.
4. Discuss the layout for sales and purchases ledger
control accounts.
Contents:
Monday February 11, 2019
The need for control accounts
Where a business is small all the accounts may be contained
in one ledger and at the end of the accounting period a trial
balance could easily be drawn up as a test of the arithmetical
accuracy of the accounts.
However, it must be remembered that certain errors may not
be revealed by the trial balance. If the trial balance totals
disagree, the books could easily and quickly be checked to
find the errors.
However, as the business grows the accounting requirements
also expand and the work has to be divided up into various
separate ledgers and, consequently, errors are not as easily
identifiable.
The error or errors could be very difficult to find and it may
be necessary to check every item in every ledger. Therefore,
57
Principles of Accounting
Weekly Plans
what is required is a type of trial balance for each ledger, and
this requirement is met by the Control Account. Thus it is
only the ledgers where the control accounts do not balance
that need detailed checking to locate any errors.
The principle of control accounts
The principle on which the control account is based is simple,
and is as follows. If the opening balance of an account is
known, together with the information of the additions and
deductions entered in the account, the closing balance can be
calculated.
This idea can be applied to a complete ledger. Suppose that
there were only four accounts in the sales ledger, in this case a
sales ledger control account would consist only of the totals of
each of the items in the sales ledger.
Example:
May 1 Balances b/d: 850+1500+750+450=$3,550
Sales in May: 900+350+400+600=$2,250
Cheques received in May: 820+900=$1,720
Discounts allowed in May: 30+20=$50
Returns inwards in May: 200+110=$310
Bad debts written off in May: $450
Class work:
Exercise 14.4x page 146-147.
Assignment:
Complete sales ledgers and sales day book.
Tuesday February 12, 2019
Information for control accounts
Sales Ledger Control
Source
 Opening debtors- List of debtors’ balances drawn up
at the end of the previous period.
 Credit sales- Total from sales day book (journal).
58
Principles of Accounting
Weekly Plans





Returns inwards- Total of returns inwards day book
(journal).
Cheques received- Cash book: Bank column on
received side.
Cash received- Cash book: Cash column on received
side.
Discounts allowed- Total of discounts allowed column
in the cash book.
Closing debtors- List of debtors’ balances drawn up at
the end of the period.
Purchases Ledger Control
Source
 Opening creditors- List of creditors’ balances drawn
up at the end of the previous period.
 Credit purchases- Total from purchases day book
(journal).
 Returns outwards- Total of returns outwards day book
(journal).
 Cheques paid- Cash book: Bank column on payments
side.
 Cash paid- Cash book: Cash column on payments side.
 Discounts received- Total of discounts received
column in the cash book.
 Closing creditors- List of creditors’ balances drawn up
at the end of the period.
Class work:
Exercise 16.5x page 164 (Sales and Purchases Ledgers and
Day Books)
Assignment:
Complete exercise for assignment.
Wednesday February 13, 2019
Advantages of Control Account
There are several advantages an organization can benefit from
by using control accounts as shown below:

Location of error- By preparing control accounts any
arithmetical errors that may have occurred are
identified. Also, if a clerk has inadvertently omitted
59
Principles of Accounting
Weekly Plans


entering an invoice or payment in the personal
accounts these too would be identified since the
control account acts as a mini trail balance. However,
it must be pointed out that there are other errors that
may still be contained in the ledgers such as
mispostings or compensating errors.
Prevention of fraud- Normally the control accounts
are under the supervision of a senior member of the
accounting team or accounts manager. This makes
fraud more difficult since any transaction entered into
a ledger account must also be included in the control
account and since a different member of staff would
be responsible for maintaining the ledgers from the
member supervising the control account it would be
more difficult to carry out fraudulent transactions.
Therefore the supervisor or manager provides an
internal check on the procedures.
Information for Management- For management
purposes the balances on the control accounts can
always be taken to equal debtors and creditors without
waiting for an extraction of individual balances.
Management control is thereby aided because the
speed at which information is obtained is one of the
prerequisites of efficient control.
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
60
Principles of Accounting
Weekly Plans
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Exercise 21.1-21.2 page 221 (Sales Ledger Control Account)
Assignment:
Complete exercise for assignment.
Thursday February 14, 2019
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Exercise 21.3-21.5 page 221 (Sales and Purchases Ledger
Control Accounts)
61
Principles of Accounting
Weekly Plans
Assignment:
Complete exercise for assignment.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session


Students will raise their
hands and share what the
term ‘control’ means.

Students will learn the
importance of drawing up
a control account and will
record information.

Teacher will introduce
new topic on Control
Accounts to the class by
asking students to define
the term ‘control’.
Teacher will explain the
need for control accounts
in accounting.
Tuesday Session
Tuesday Session

Teacher will draw a table 
on the board and list the
elements that are recorded
in the sales and purchases
control account.

Teacher will assign a Day
Book for students to
complete in order to
prepare the data for the
control accounts.

Students will work in
groups of 4s and complete
the Day Books in order to
obtain the information for
the control account.

Teacher will provide

guidance where necessary
to ensure students
understand the concepts.
Students will calculate the
necessary figures
accurately.
Students will record table
in their notebooks on the
elements in the sales and
purchases control
account.
62
Principles of Accounting
Weekly Plans
Wednesday Session
Wednesday Session

Teacher will discuss with 
students the advantages of
control accounts.

Teacher will provide
students with notes to
record.

Students will record notes
on the advantages of
control accounts.

Teacher will assign class
exercise to reinforce
topic.

Students will complete
class exercise in groups of
4s.
Students will participate
in discussion on the
advantages of control
accounts.
Thursday Session
Thursday Session

Teacher will draw the
layout of the sales and
purchases control account
on a news print.

Students will discuss and
record the layout of the
sales and purchases
control account.

Teacher will assign
exercises 21.1-21.5 page
221.

Students will complete
exercises 21.1-21.5 page
221 for practice.
Assignment:
Review chapter 21: Control Accounts
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
63
Principles of Accounting
Weekly Plans
Pass/Fail Rate:
Assessment:
No formal assessment.
64
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 11
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
February 18 – February 22, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 21: Control Accounts
Previous Knowledge:
Students have prepared books of Original Entries.
Specific Objectives:
Students should be able to:
1. Prepare sales and purchases ledger control
accounts.
Contents:
Monday February 18, 2019
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
65
Principles of Accounting
Weekly Plans
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Exercise 21.6x page 222 (Sales and Purchases Ledger Control
Accounts)
Assignment:
Complete exercise for assignment.
Tuesday February 19, 2019
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
66
Principles of Accounting
Weekly Plans
Graded Class work:
Exercise 21.7x page 222 (Sales and Purchases Ledger Control
Accounts)
Assignment:
Complete exercise for assignment.
Wednesday February 20, 2019
Revision for assessment
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Class work:
Discuss exercise 21.7x page 222 (Sales Ledger Control
Account)
67
Principles of Accounting
Weekly Plans
Assignment:
Complete exercise for assignment.
Thursday February 21, 2019
Graded Assessment 50 pts
Layout for Control Accounts
Dr.
Sales Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bal b/d
3,816 Aug 1 Bal b/d
22
Aug 31 Sales
7,090 Aug 31 Cash
104
Cash Refund
37
Bank
6,239
Bank: Dis.cheq 29
Bad debts
306
Int. on debt
50
Dis. Allowed
298
Ret. Inwards
664
Bal c/d
40
Bal c/d
3,429
11,062
11,062
Dr.
Purchases Ledger Control Account
Cr.
2007
$ 2007
$
Aug 1 Bank
3,620
Aug 1 Bal b/d
3,890
Aug 31 Ret. Out
95
Aug 31 Purchases
4,936
Bal c/d
5,151
8,866
8,826*
*As can be seen from the totals at the bottom of the control
account, there is a $40 ($8,866- $8,826) error in the purchases
ledger. We will have to check that ledger in detail to find the
error.
Assessment attached:
Exercise 31.1-31.5 pages 380-381 (Sales and Purchases
Ledger Control Accounts)
Assignment:
Read chapter 40: Payroll Accounting page 467.
68
Principles of Accounting
Weekly Plans
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will provide
students with class
exercise to work on in
groups of 4s.


Teacher will monitor

students and make
clarifications if necessary.

Teacher will assign
unfinished work for
assignment and ask
students to review notes.

Students will form their
groups of 4s and work on
class exercise.
Students will remain on
task and ask questions
where necessary.
Students will complete
unfinished work and
review notes on topic.
Tuesday Session
Tuesday Session

Teacher will assign
graded class exercise
21.7x page 222 for
students to complete.

Students will complete
graded class exercise
21.7x page 222.

Teacher will collect
graded work at the end of
the class.

Students will submit
graded class work at the
end of the class.
Wednesday Session
Wednesday Session


Teacher will outline all
the elements within sales
and purchases control
account on slips of paper.
Students will receive a
slip of paper with an
element within the sale
and purchases control
account and place it under
the correct column on the
board.
69
Principles of Accounting
Weekly Plans

Teacher will make further
verification to students
concerning the accounts.

Students will ask any
questions relating to the
reason for the account to
be placed in the specific
control account.

Teacher will create own
examples and provide
them to students so they
can obtain additional
practice.

Students will complete
additional practice on the
content.
Thursday Session
Thursday Session


Teacher will administer
assessment on sales and
purchases ledger control
accounts.
Students will complete
assessment on sales and
purchases ledger control
account.
Assignment:
Review chapter 21: Control Accounts
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Test on Sales and Purchases ledger Control Account 50 pts
70
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 12
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Specific Objectives:
Contents:
Anglican Cathedral College
Fourth Form
Ms. S. Requena
February 25 – March 1, 2019
40 Minutes Per Class (Five Classes Per Week) Double period
Thursday
Financial statements of other organizations
Chapter 40: Payroll Accounting
Students are aware that in order to receive an income hours
worked has to be calculated.
Students should be able to:
1. Outline the functions of the payroll.
2. Discuss the various methods for calculating
employees’ pay.
3. Distinguish between statutory and non-statutory
deductions.
Monday February 25, 2019
Functions of the payroll
To enable the payment of wages and salaries to be carried
pout efficiently and accurately, all organization, whether large
or small, need to keep records of all their employees,
including recording basic personal details. Such confidential
personal records are usually kept in the personnel department
of an organization.
The payroll is a list of employees that specifies the wage or
salary that each employee receives. The procedures and
calculations that are necessary to produce this list need to be
fully understood and applied to ensure that all employees ate
paid promptly and correctly.
71
Principles of Accounting
Weekly Plans
The responsibility for producing the payroll will depend on
the size of the organization. A large organization will
probably have a wages department, whereas a small one will
rely on a wages clerk. Irrespective of who carries out the
function, the person must ensure that the payments are:
Accurate:




Correct basic payment for word done.
Additional entitlement such as bonus, overtime,
expenses, etc. included correctly.
Correct deduction of taxes, national insurance and
other deductions.
Reliable wage-cost information for the employer.
Regular and on time:


Enables the employees to meet their own financial
commitments and plan future expenditure.
In contrast, late or irregular payment would harm the
morale of employees and cause them to doubt the
financial stability of the organization.
Confidential:


Staff involved in preparing the payroll must not
divulge any of its contents except to authorized
people, e.g. company executives, government
officials.
Staff must be able to discuss with an employee that
particular employee’s wage/salary details.
Secure:




The handling of cash and cheques must be carried out
in a secure environment to prevent loss, theft or loss of
confidentiality.
Checks must be built into the procedures to guard
against the possibility of fraud by wages staff.
The distribution of wages must be organized so that
the employee receives his or her own wage and not
someone else’s.
All employee records must be kept in a secure place.
72
Principles of Accounting
Weekly Plans
Class work:
Record information and discuss functions of payroll.
Assignment:
Review class notes and read pages 469-470.
Tuesday February 26, 2019
Payments to employees
Payments to employees may be made by wages or salary.
Wages are usually paid weekly, often in cash, and often to
manual workers. Salaries are paid monthly by cheque or
direct into the employee’s bank account or building society.
Pay may also be referred to as remuneration, which simply
means to reward or pay for worked carried out. This
remuneration is often attached to pay given to the directors of
a company, where their pay is recorded in the accounts as
‘directors’ remuneration’.
Gross pay and net pay
All employees are subject to income tax and other deductions
which have to be made by the employer from the gross pay,
ans so it is important to distinguish between the gross pay
figure and the net pay. Gross pay is the amount of wage or
salary due to the employee before any deductions are made.
Net pay is the amount of wage or salary received by the
employee after all deductions have been made.
Methods of calculating pay
It is possible that not all employers will use the same methods
for calculating pay. The pay structure for employees may also
73
Principles of Accounting
Weekly Plans
vary depending on their particular job. The main methods are
as follows:




Fixed amount of salary (usually per year) or wage (per
week).
Time rates- a fixed rate per hour multiplied by the
number of hours worked.
Price rate- based on the number of units produced.
Commission- usually a percentage based on the
amount of sales made by the employee.
Class work:
Record formulas to calculate the methods to calculate pay.
Assignment:
Read pages 472-474.
Wednesday February 27, 2019
Time cards and time sheets
In many businesses, employees will have a time card that
must be ‘punched’ in a special machine when they arrive at
work, and again when they leave work. The machine contains
a clock and a printing device that prints the times on to the
time card when it is inserted (punched) into the machine. It is
from such time cards that time sheets are made out.
The type of business where this is particularly important us
where employees are paid on a time basis; obviously, the
business then needs accurate measures of the time worked per
employee to enable to wages to be calculated correctly.
In other established staff may sign in by recording their names
in a book and adding the times of arrival and departure. It all
depends on the nature of the business and the firm’s attitude
towards timekeeping. In the case of fixed annual pay,
irrespective of the number of hours worked, there is no need
for exact timekeeping for the purposes of earnings
calculations.
74
Principles of Accounting
Weekly Plans
Where a time card system or something similar is used, then
time sheets can be made out. Exhibit 40.1 shows a typical
time sheet. In this case, if overtime is paid at the rate of time
and a half, then Hamilton will be paid for 40 + (3 x 1 ½= 4 ½
)= 44 ½ hours.
Deductions from gross pay
The main structure of deductions is, however, very similar in
each country. All of the rates of income tax and social
security deductions are for purposes of illustration only; it
must not be thought that these are the exact rates four your
company.
Statutory and non-statutory deductions
Statutory deductions
Deductions that an employer has to make by law from the
employees’ gross pay. The most common are:
 Income tax
 Social security contributions
Non- statutory deductions
Deductions that an employee has requested to be made from
his/her pay. They include payments to:
 Trade unions
 Social clubs
 Pension/superannuation schemes
Class work:
Record notes.
Assignment:
Read pages 475-477.
Thursday February 28, 2019
Class work:
Exercise 40.1 page 478.
75
Principles of Accounting
Weekly Plans
Assignment:
Complete exercise for assignment.
Methodology:
Activities:





Brainstorming
Discussion
Note taking
Analyzing
Researching
Teacher’s Activities
Monday Session
Students’ Activities
Monday Session

Teacher will introduce
chapter by asking
students how is it that an
employer knows what an
employee should receive
in pay.

Students will ponder the
question and share their
responses with the class.

Teacher will provide
students with notes on the
functions of payroll.

Students will record
information on the
functions of payroll.

Teacher will assign

reading in order for
students to come prepared
for discussion next class.
Students will complete
reading assignment for
next class.
Tuesday Session
Tuesday Session

Teacher will provide
students with the various
methods for calculating
pay.

Students will record the
various methods for
calculating pay.

Teacher will providing a
working example of each
of the method.

Students will pay
attention and ask
questions where
necessary to understand
each method.
76
Principles of Accounting
Weekly Plans

Teacher will assign

reading in order for
students to come prepared
for discussion next class.
Students will complete
reading assignment for
next class.
Wednesday Session
Wednesday Session

Teacher will outline how
to prepare time cards and
time sheets.

Students will record how
to prepare time cards and
time sheets.

Teacher will provide
students with additional
example.

Students will work in
groups and practice
additional example.
Thursday Session
Thursday Session

Teacher will assign
exercise 40.1 page 478
for students to apply the
concept.

Students will complete
exercise 40.1 page 478 to
demonstrate what they
know about the content.

Teacher will assign
additional reading
assignment.

Students will complete
additional reading
assignment.
Assignment:
Read chapter 40: Payroll Accounting
References:
Principles of Accounts for Caribbean Examinations
Principles of Accounts for CXC
Teacher’s Evaluation:
77
Principles of Accounting
Weekly Plans
Pass/Fail Rate:
Assessment:
No formal assessment.
78
Principles of Accounting
Weekly Plans
Name: __________________________
Anglican Cathedral College
Class: _________________________
Date: _________________
Principles of Accounts Test
Introduction to accounting ratios (Total 40 points)
1. (a) What does the abbreviation MUC stands for?
(b) What does the abbreviation MRS stands for?
(2 marks)
2. If the cost for an item is $80 and it was sold for $100.
(a) What is the mark-up?
(b) What is the margin?
(4 marks)
3. (a) Given 20% markup, what is the margin?
(b) Given 25% margin, what is the markup?
(4 marks)
4. R Flowers is a trade who sells all of her goods at 50% above cost. Her books give the
following information at December 31, 2007:
Opening Inventory
Closing Inventory
Sales
Calculate the following:
$
4,555
3,653
39,000
(a) Cost of goods sold
(b) Purchases
(c) Gross Profit
Show your answer in the form of a trading account.
(10 marks)
5. B Smalls is a trader who sells all of his goods at 20% margin. His books give the following
information at 31 December 2009.
Inventory at 1 January 2009
Inventory at 31 December 2009
Cost of goods sold
$
8,765
7,441
72,000
Produce the trading account for the year ended 31 December 2009.
(10 marks)
79
Principles of Accounting
Weekly Plans
6. Using the following information for C. Harley prepare a trading account for December 31,
2013 Opening inventory 17,000, Closing inventory 24,000 Cost of sales 84,000. He has a
markup of 60%.
(5 marks)
7. A business has a rate of stock turnover of 6 times. The average stock is $6,500. A profit
margin of 25% on all selling prices. Expenses are given as 80% of gross profit. Calculate:
(a) cost of goods sold
(b) gross profit
(c) sales
(d) total expenses
(e) net profit
(5 marks)
80
Principles of Accounting
Weekly Plans
Principles of Accounting Weekly Plan
Second Term
Week 8
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 29 – February 2, 2018
40 Minutes Per Class (Five Classes Per
Week) Double period Thursday
Financial statements of other organizations
Specific Objectives:
Chapter 39: Analysis and interpretation of
accounts
Students are familiar with profitability and
liquidity ratios and which financial statement
they apply to.
Students should be able to:
1. Prepare TP&L and Balance Sheet.
2. Calculate and analyze ratios and
profitability, liquidity and
efficiency to asses a business
performance.
3. Complete assessment on ratios.
Contents:
Monday January 29, 2018 (40 minutes)
Teacher/Student Activities
Previous Knowledge:
Profitability ratios

Gross Profit as percentage of Sales
The basic formula is:

Gross profit x 100 = GP as % of Sales
Sales

Students will recall the profitability and
liquidity ratios using a minute slip
technique where they will be given a
minute to record all the profitability ratios
and a minute to record all the liquidity
ratios with formulas.
Teacher will go through what the students
recorded and make corrections where
necessary.
Students will then be asked to turn to page
116 and prepare the TP&L Account and
the Balance Sheet for exercise 11.4.
81
Principles of Accounting
Weekly Plans

Net Profit as percentage of Sales
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
82
Principles of Accounting
Weekly Plans
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
Class work:
Exercise 11.4 page 116
Assignment:
Complete class work for assignment.
Profitability ratios
Gross Profit as percentage of Sales
Tuesday January 30, 2018 (40 minutes)


The basic formula is:
Gross profit x 100 = GP as % of Sales

Sales

Net Profit as percentage of Sales
Students will prepare the TP&L Account
and the Balance Sheet for exercise 11.5x.
Students will then be provided with one
minute to consult a friend to verify if they
have the correct figures for the financial
statements.
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
Teacher will provide guidance where
necessary to ensure students understand
the concepts.
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
83
Principles of Accounting
Weekly Plans
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
84
Principles of Accounting
Weekly Plans
Class work:
Exercise 11.5x page 117
Assignment:
Complete class work for assignment.
Profitability ratios
Gross Profit as percentage of Sales
The basic formula is:
Wednesday January 31, 2018 (40 minutes)


Gross profit x 100 = GP as % of Sales
Sales

Students will prepare the TP&L Account
and the Balance Sheet for exercise 11.6x
in small groups and place information on
newsprint provided.
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
Teacher will provide guidance where
necessary to ensure students understand
the concepts.
Net Profit as percentage of Sales
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
85
Principles of Accounting
Weekly Plans
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
Class work:
Exercise 11.6x page 117
Assignment:
Complete class work for assignment and
review for assessment.
86
Principles of Accounting
Weekly Plans
Test on Profitability and Liquidity Ratios
Profitability ratios
The main ratios used to examine profitability
are:
Thursday February 1, 2018 (80 minutes)
 Students will complete test on
profitability and liquidity ratios.
 Students will use the entire class session
to calculate the required information and
submit papers at the end of the session.
6.
7.
8.
9.
Gross profit : Sales ratio
Net profit : sales ratio
Expenses : sales ratio
Return on capital employed (ROCE)
ratio
10. Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
5.
6.
7.
8.
Current ratio (working capital ratio)
Acid test ratio (quick ratio)
Debtors : sales ratio
Creditors: purchases ratio.
References:
Principles of Accounts for the Caribbean 5th
Edition
Frank Wood Sheila Robinson
Business Accounting 1 11th Edition
Frank Wood Alan Sangster
Teacher’s Evaluation:
Pass/Fail Rate:
87
Principles of Accounting
Assessment:
Weekly Plans
Test (40 pts). Assessment attached
Principles of Accounting Weekly Plan
Second Term
Week 8
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Anglican Cathedral College
Fourth Form
Ms. S. Requena
January 29 – February 2, 2018
40 Minutes Per Class (Five Classes Per
Week) Double period Thursday
Financial statements of other organizations
Specific Objectives:
Chapter 39: Analysis and interpretation of
accounts
Students are familiar with profitability and
liquidity ratios and which financial statement
they apply to.
Students should be able to:
1. Prepare TP&L and Balance Sheet.
2. Calculate and analyze ratios and
profitability, liquidity and
efficiency to asses a business
performance.
3. Complete assessment on ratios.
Contents:
Monday February 5, 2018 (40 minutes)
Teacher/Student Activities
Previous Knowledge:
Profitability ratios

Gross Profit as percentage of Sales
The basic formula is:
Gross profit x 100 = GP as % of Sales

Students will recall the profitability and
liquidity ratios using a minute slip
technique where they will be given a
minute to record all the profitability ratios
and a minute to record all the liquidity
ratios with formulas.
Teacher will go through what the students
recorded and make corrections where
necessary.
88
Principles of Accounting
Sales
Net Profit as percentage of Sales
Weekly Plans


Students will then be asked to turn to page
116 and prepare the TP&L Account and
the Balance Sheet for exercise 11.4.
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
89
Principles of Accounting
Weekly Plans
Current liabilities
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
Class work:
Exercise 11.4 page 116
Assignment:
Complete class work for assignment.
Profitability ratios
Tuesday February 6, 2018 (40 minutes)
Gross Profit as percentage of Sales

The basic formula is:

Gross profit x 100 = GP as % of Sales
Sales


Net Profit as percentage of Sales
Students will prepare the TP&L Account
and the Balance Sheet for exercise 11.5x.
Students will then be provided with one
minute to consult a friend to verify if they
have the correct figures for the financial
statements.
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
Teacher will provide guidance where
necessary to ensure students understand
the concepts.
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
90
Principles of Accounting
Weekly Plans
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
91
Principles of Accounting
Weekly Plans
Class work:
Exercise 11.5x page 117
Assignment:
Complete class work for assignment.
Profitability ratios
Wednesday February 7, 2018 (40 minutes)
Gross Profit as percentage of Sales

The basic formula is:
Gross profit x 100 = GP as % of Sales
Sales


Students will prepare the TP&L Account
and the Balance Sheet for exercise 11.6x
in small groups and place information on
newsprint provided.
After preparing the financial statements,
students will calculate the profitability and
liquidity ratios.
Teacher will provide guidance where
necessary to ensure students understand
the concepts.
Net Profit as percentage of Sales
The basic formula is:
Net profit x 100 = NP as % of Sales
Sales
Stock Turnover Ratio
The ratio is calculated as follows:
Cost of goods sold = Stock Turnover Ratio
Average stock
92
Principles of Accounting
Weekly Plans
Expenses to sales ratio:
Expenses as a % of sales = Expenses x 100
Sales
Return of capital employed = Net Profitx 100
Capital employed
Liquidity Ratios
Current ratio (working capital ratio):
Current assets
Current liabilities
Acid test ratio (quick ratio):
Current assets – stock
Current liabilities
Debtors : Sales ratio: Number of months
debtors (on average) take to pay
Debtorsx 12 times a year
Sales for the year
Creditors : Purchases ratio: Number of
months it takes (on average) to pay suppliers
Creditors
x 12 times a year
Purchases for the year
Class work:
Exercise 11.6x page 117
Assignment:
Complete class work for assignment and
review for assessment.
93
Principles of Accounting
Weekly Plans
Test on Profitability and Liquidity Ratios
Profitability ratios
The main ratios used to examine profitability
are:
Thursday February 8, 2018 (80 minutes)
 Students will complete test on
profitability and liquidity ratios.
 Students will use the entire class session
to calculate the required information and
submit papers at the end of the session.
11. Gross profit : Sales ratio
12. Net profit : sales ratio
13. Expenses : sales ratio
14. Return on capital employed (ROCE)
ratio
15. Stock turnover ratio.
Liquidity Ratios
A business that has satisfactory liquidity will
Ratios used to examine liquidity:
9. Current ratio (working capital ratio)
10. Acid test ratio (quick ratio)
11. Debtors : sales ratio
12. Creditors: purchases ratio.
References:
Principles of Accounts for the Caribbean 5th
Edition
Frank Wood Sheila Robinson
Business Accounting 1 11th Edition
Frank Wood Alan Sangster
Teacher’s Evaluation:
Pass/Fail Rate:
94
Principles of Accounting
Assessment:
Weekly Plans
Test (40 pts). Assessment attached
Principles of Accounting Weekly Plan
Second Term
Week 10
School:
Class:
Lecturer:
Date:
Time:
Unit:
Topic(s):
Previous Knowledge:
Specific Objectives:
Contents:
Uses of the Trading and Profit and Loss
Account
o Comparing results obtained with
expected results.
o To calculate gross profit - much
attention is given to this figure in
trading organization to determine
how much profit is made before
deducting expenses.
Anglican Cathedral College
Fourth Form
Ms. S. Requena
February 12 – February 16, 2018
40 Minutes Per Class (Five Classes Per
Week) Double period Thursday
Financial statements of sole traders
Chapter 9-11: Trading and Profit and Loss
Account and Balance Sheet
Students are reviewing the financial
statements and are aware of the elements
within the statements.
Students should be able to:
1. Prepare TP&L and Balance Sheet.
2. Create a board game based on
Financial Statements.
Monday February 12, 2018 (40 minutes)
Teacher/Student Activities



Students will be provided with trial
balance and will identify the accounts that
will be used in the TP&L Account.
Teacher will point out to students that the
TP&L layout is being adjusted a bit in
order to record additional information
provided in the trial balance.
Teacher will explain the new terms to
students in order for them to understand
why the adjustments are made.
95
Principles of Accounting
o Gross profit is calculated in the

trading account and is the excess
of sales over the cost of goods sold
in the period.
o To calculate net profit. This is
calculated in the profit and loss
account and is equally important
to owners and other groups. It is
what is left after all other expenses
have been deducted.
Weekly Plans
Students will apply what they have learnt
to complete class exercises.
Trading Account
Sales
Less Returns Inwards
Less Cost of Goods Sold:
Opening Stock
Add Purchases
Add Carriage Inwards
Less Returns Outwards
Less Closing Stock
Gross Profit/Loss:
Profit and Loss Account
Less Expenses:
Carriage Outwards
Net Profit/Loss:
Class Work: Complete TP&L and Balance
Sheet Account for exercise 9.3 page 102.
Assignment: Exercise 9.4 page 103 TP&L
and Balance Sheet.
96
Principles of Accounting
Weekly Plans
Tuesday February 13, 2018 (40 minutes)
Uses of the Trading and Profit and Loss

Account
o Comparing results obtained with
expected results.

o To calculate gross profit - much
attention is given to this figure in
trading organization to determine

how much profit is made before
deducting expenses.
o Gross profit is calculated in the
trading account and is the excess
of sales over the cost of goods sold
in the period.
o To calculate net profit. This is
calculated in the profit and loss
account and is equally important
to owners and other groups. It is
what is left after all other expenses
have been deducted.
Students will be provided with trial
balance and will identify the accounts that
will be used in the TP&L Account.
Teacher will explain the remainder of the
terms to students in order for them to
understand why the adjustments are made.
Students will apply what they have learnt
to complete class exercises.
Trading Account
Sales
Less Returns Inwards
Less Cost of Goods Sold:
Opening Stock
Add Purchases
Add Carriage Inwards
Less Returns Outwards
Less Closing Stock
Gross Profit/Loss:
Profit and Loss Account
Less Expenses:
Carriage Outwards
Net Profit/Loss:
97
Principles of Accounting
Weekly Plans
Class Work: Complete TP&L Account for
exercise 9.5A page 103.
Assignment: Complete the Balance Sheet.
Wednesday February 14, 2018 (40 minutes)
Step-by-step guide to preparing financial
statements

1. Rule lines connecting each item in the 
trail balance. This avoids selecting a
wrong figure that can easily happen
under the stress of an examination.

2. Decide into which section of the
financial statement each item should
be entered before you start. T for
trading account, P/L for profit and loss
account, BS for the balance sheet.
3. Remember that each item displayed in
the trial balance must only be entered
once in the financial statements. Any
item below the trial balance should be
dealt with twice (closing stock). This
figure should be dealt with once as the
closing stock in the trading account
and second in the balance sheet under
the heading ‘current assets’.
Students will prepare TP&L Account for
exercise 9.6A page 104 using step-by-step
guide provided to them.
Teacher will monitor students to ensure
they remain on task and to answer any
questions they may have.
Students will place completed work on a
newsprint for the class to view.
Class Work: Complete TP&L Account for
exercise 9.6A page 103.
Assignment: Think about a board game to
create.
Board Game Rubric Attached (50 points)
Thursday February 15, 2018 (80 minutes)
 Students will bring materials and make
accounting board games that display their
understanding of the financial statements.
98
Principles of Accounting
Weekly Plans

References:
Teacher will collect games at the end of
the class for a grade.
Principles of Accounts for the Caribbean 5th
Edition
Frank Wood Sheila Robinson
Business Accounting 1 11th Edition
Frank Wood Alan Sangster
Teacher’s Evaluation:
Pass/Fail Rate:
Assessment:
Board Game (50 points)
99